Exercise 14-2 Financial Ratios for Assessing Liquidity [LO14-21 Comparative financial statements for Weller Corporation, o merchandising company, for the year ending December 31 appear below. The company did not issue any new common stock during the year. A total of 500.000 shares of common stock were outstanding. The interest rate on the bond payable was 10%, the income tax rate was 40% and the dividend per share of common stock was $0.75 last year and $0.40 this year. The market value of the company's common stock at the end of the year was $29. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year $ 1,130 18,120 12,900 7ae 24,830 $ 1,360 7.000 11,200 620 20,180 18,200 42,072 52.272 $77,192 10.200 37,291 47,491 $67,671 Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Property and equipment: Land Buildings and equipment, net Total property and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable, short term Total current liabilitics Long term liabilities: Bonds payable Total liabilities Stockholders' equity: Common stock Additional paid in capital Total paid in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $18,600 1,240 250 19,900 $17.600 730 25e 18,590 8.400 28,300 8,400 26,990 See 4,099 4,500 44.392 48,882 $77,192 see 4,000 4, see 36,181 48,681 $67,671 Last Year $66,000 38.000 28.000 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $71,000 Cost of goods sold 38,888 Gross margin 33,290 Selling and administrative expenses: Selling expenses 11, 20e Administrative expenses 6.80 Total selling and administrative expenses 18.ae Net operating income 15,000 Interest expense Net income before taxes 14,160 Income taxes 5,664 Net income 8,496 Dividends to common stockholders 375 Net income added to retained earnings 8,121 Beginning retained earnings 36,181 Ending retained earnings $44, 302 18,500 6,800 17.30e 18,700 3.944 5,916 375 5,543 38,640 $36,181 Required: Compute the following financial data and ratios for this year: 1. Working capital. (Enter your answer in thousands. 2. Current ratio. (Round your answer to 2 decimal places.) 3. Acid-test ratio. (Round your answer to 2 decimal places.) 1. Working capital 2. Current ratio 3. Acid-test ratio